ELITE WORLD ESTATES BLOG

Written by Anita Orłowska on 24.02.2026 - 7m reading

Written by Anita Orłowska on 24.02.2026 - 7m reading

Written by Anita Orłowska on 24.02.2026 - 7m reading

When buying property in Spain, most people focus on the purchase price, acquisition tax, and notary costs. Only later does a topic arise that genuinely impacts long-term ownership expenses: property tax in Spain, known as IBI. In this article, we will look at how much property tax in Spain will be in 2026, what it depends on, and how it affects investment on the Costa Blanca.

Contents:

• What is property tax in Spain (IBI)?

• What determines the amount of IBI?

• IBI 2026 – specific rates on the Costa Blanca

• Can IBI increase?

• IBI and investment profitability over a 10–15 year period

If you are analysing the full cost picture, it is also worth comparing it with taxes for non-residents Property and Wealth Tax in Spain – Obligations for Non-Residents and the differences between resident and non-resident status Resident vs Non-Resident in Spain – Tax Differences in Practice.

IBI (Impuesto sobre Bienes Inmuebles) is an annual local property tax collected by the town hall (Ayuntamiento).

It applies to:

• apartments and flats

• houses and villas

• plots of land

• commercial premises

Most importantly, IBI is linked to the property, not the individual. This means that every owner — whether resident or non-resident — is obliged to pay it. It is a fixed cost of owning property in Spain.

The amount of IBI does not depend on the price you paid for the property. The basis is the so-called valor catastral — an administrative value determined by the land registry office (Catastro). It is usually lower than the real market value.

The municipality then applies its own percentage rate to this value. This is where differences between cities appear. That is why the question “how much is property tax in Spain?” always requires specifying the location.

In 2026, on the Costa Blanca, rates for urban properties (urbana) generally range between 0.6% and 0.7%.

For example:

• In Alicante the rate is approximately 0.62%.

• In Torrevieja around 0.67%.

• In Benidorm around 0.68%.

With a valor catastral of €150,000, the difference between 0.62% and 0.68% is about €90 per year.

Over 15 years, this amounts to more than €1,300.

This is why location matters not only at the time of purchase, but also when analysing long-term maintenance costs.

This is a question more and more investors are asking. The answer is: yes, it can.

An increase may occur for two reasons. First, the municipality may change the percentage rate. Second, the valor catastral may be updated. If the Catastro carries out a value revision in a given area, the tax may increase even if the market price of the property remains stable.

That is why, when analysing a long-term investment, it is important to consider not only the current IBI amount, but also potential future changes.

For rental properties, IBI is considered a deductible expense, meaning it can reduce the taxable income. However, even as a tax-deductible cost, it still affects real cash flow.

With a valor catastral of €220,000, the difference between 0.62% and 0.68% is about €132 per year. Over a 15-year investment horizon, this equals nearly €2,000. If you own three properties, this becomes a clearly noticeable budget item.

Property tax in Spain in 2026 is not high compared to many European countries, but it should always be included in any realistic financial calculation.

We are here to help you! Please enter your contact details below and we will contact you as soon as possible.

Let us narrow down the search among the properties available through us, by contacting us and finding the best options for you. 
We are here to help you!
Please enter your contact details below and we will contact you as soon as possible.

Let us narrow down the search among the properties available through us, by contacting us and finding the best options for you. We are here to help you! Please enter your contact details below and we will contact you as soon as possible.

Let us narrow down the search among the properties available through us, by contacting us and finding the best options for you. We are here to help you!
Please enter your contact details below and we will contact you as soon as possible.